According to CMOC, the acquired assets collectively include a total gold reserve of 5.013 million ounces and reserves of 3.873 million ounces. Gold production from the Brazilian operations totaled 247,300 ounces in 2024, in line with Equinox’s guidance of 250,000 to 270,000 ounces of production this year.
The consideration includes an upfront cash payment of US$900 million at closing and a contingent payment of up to US$115 million tied to production volumes during the first year post-closing.
“The transaction is an important step that demonstrates our conviction in gold and continues our strategy of basing the portfolio on copper and gold,” said Liu Jianfeng, chairman and chief investment officer of CMOC, in the press release. official press release.
CMOC said the deal will add about eight tonnes of annual gold production to its portfolio. The company expects its gold production to potentially exceed 20 tonnes per year once the Odin gold mine in Ecuador comes on stream, positioning the group for further long-term growth in the metal.
For Equinox Gold, the sale also marks a change in operating strategy. The Vancouver-based company said the divestiture of its Brazilian assets will simplify its portfolio and sharpen its focus on North America.
Chief executive Darren Hall described the move as a turning point for the company, calling the transaction a “critical step” towards becoming a purely North American-focused gold producer.
Following the sale, Equinox’s core assets will include the Valentine and Greenstone mines in Canada, both of which entered commercial production in the past thirteen months, and the long-term Mesquite mine in California.
Greenstone is expected to produce between 220,000 and 260,000 ounces of gold this year, while Valentine is expected to deliver 175,000 to 200,000 ounces of gold annually once production is fully ramped up. The Mesquite mine is also expected to contribute approximately 95,000 ounces by 2025.
As production at its Canadian operations ramps up to full capacity, Equinox expects annual gold production of between 700,000 and 800,000 ounces next year and plans to release detailed production and cost guidance in early 2026.
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and conditions.
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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
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